Page 68 - BCM July 2024
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D.C. WATCH




              Navigating the Pending Reforms


              Why bowling needs the Tax Relief for American Families and Workers Act.

                 n today’s rapidly evolving economy, it’s important for   calculated approach, potentially sidelining the immediate
              I small-business owners to stay abreast of legislative   bene  ts the current bill could provide.
              changes that could impact their operations. One such   Currently, Republicans are preparing to enact their own
              piece of legislation making its way through Congress, the   tax package should they secure control of Congress and
              Tax Relief for American Families and Workers Act, holds   the White House in the November elections.    is strat-
                           real consequences for industries across   egy entails educating newer Members of Congress about
                           the board, including the bowling and other   the budget reconciliation process, which allows tax and
                           entertainment sectors. Understanding the   spending changes to pass with simple majorities, bypass-
                           progress of this bill is key for strategic plan-  ing the need for a 60-vote supermajority in the Senate.
                           ning as the tax and regulatory landscape   Still, the future of such a tax package will depend on which
                           shifts.                                 party ends up controlling Congress.
              BRANDON           e act is a comprehensive bill designed      e delay of the act creates considerable challenges
               PALUMBO     to support American families and stimu-  for small businesses, notably in the bowling industry.
                           late business innovation. Key components   Central to the bill is the renewal of the R&D tax credit,
                           include the renewal of the expired research   which would allow small businesses to fully deduct their
              and development tax credit, which allows businesses to   R&D expenses. For bowling centers, this means potential
              deduct full R&D expenses from their taxable income —     nancial relief through innovations like advanced scoring
              critical for small businesses aiming to innovate or improve   systems, improved lane materials or new entertainment
              their services.                                      technologies. However, the bill’s uncertainty hampers   -
                Additionally, the bill expands the child tax credit, aim-  nancial planning and could escalate operational costs and
              ing to increase the bene  t annually until it reaches $2,000   limit expansion opportunities, a  ecting overall market
              in 2025, followed by adjustments for in  ation to provide   competitiveness.    is uncertainty may also discourage
              tax relief to working families. However, expanding such   investments in technological and facility upgrades, inhib-
              programs, thereby increasing federal spending de  cits,   iting growth and innovation.
              has been met with opposition from Senate Republicans,   Consider a hypothetical scenario involving a mid-sized
              notably the Ranking Member of the Senate Finance Com-  bowling center planning to introduce cutting-edge gaming
              mittee, Senator Mike Crapo (R-ID). Despite passing the   technologies and enhanced customer interaction capabil-
              House with strong bipartisan support, the bill is stalled in   ity. With the R&D tax credit, this center could a  ord these
              the Senate due to these concerns, leaving its future uncer-  upgrades, potentially transforming customer experiences
              tain and many businesses in a state of limbo.        and extending their stays.    e upgrades would not only
                   e Tax Relief for American Families and Workers Act   boost the center’s market presence but also bene  t the
              is at the heart of a signi  cant partisan divide, with robust   local economy by creating jobs and increasing supplier
              Democratic support clashing against Republican resis-  activity.
              tance. Senator Ron Wyden (D-OR), a key proponent of       e enactment of the Tax Relief for American Families
              the bill and Chair of the Senate Finance Committee, has   and Workers Act is vital for the continued growth and
              vocally criticized Senate Republicans for their inaction.   sustainability of small businesses. Particularly in com-
              He accuses them of delaying the bill in hopes of secur-  munity-centric industries like bowling, the e  ects of this
              ing electoral gains in the upcoming November elections,   legislation extend beyond business owners to the broader
              potentially to pass their own version of tax legislation.   community.
              Senate Majority Leader Chuck Schumer (D-NY) has stated   Bowling center owners and related stakeholders must
              he would put the tax package on the Senate   oor if it had   actively engage with their congressional representatives
              enough votes to pass.                                to advocate for the rapid passage of this bill, ensuring that
                Republican senators are urging changes to the expan-  small businesses can thrive in today’s challenging eco-
              sion of the Child Tax Credit or at least a chance to get votes   nomic climate. Let’s champion a future that supports a
              on amendments. However, Senator Crapo has ended talks   legislative environment in which small businesses remain
              with Senator Wyden.                                  pivotal to America’s economic success.
                Since then, Senate Republicans led by Senator Crapo
              have formed working groups as a strategic move to      Brandon Palumbo is a senior associate with Michael Best
              prepare for the vast array of tax provisions set to expire   Strategies. BPAA works with Michael Best Strategies on
              in 2025, known internally as the “tax cli  .”    is is a more   federal and state advocacy.

              66  •  BCM  •  JULY 2024                                                               www.bcmmag.com




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